Baby Boomer Apparel Raises Value for National Chains

by Gary Kulp, President, Gordon Brothers Retail Partners

The generation that defined American life for the second half of the twentieth century is at it again. Big-name retailers are creating brands and stores to clothe the changing shapes of baby boomers.

Currently, the 35 and over clothing category is a greatly under-served retail group. While you see a great deal of advertising dollars spent on teenagers, the teen category spends only $20 billion a year on clothes. Baby boomers spend a whopping $43 billion.

This is definitely a long-term trend. Simply put, those boomers aren't going anywhere. This group has been making their wants and needs known since the 60's. They have created and defined trends ever since then. Stores that aggressively target this audience, with quality products uniquely marketed to them, will definitely see their value rise. The value of the clothing itself will also climb, as long as it is matched to the specific needs of the 35 and over crowd.

Who are some big players chasing after boomer dollars? The Gap has launched Forth and Towne, a store aimed specifically at this category. Abercrombie and Fitch--a company that has redefined teen and college-aged apparel marketing over the last five years--is opening Ruhle stores. American Eagle also plans to open a similar clothing chain in the near future.

Before retailers put all their clothes into one basket, here's one caveat. Companies must balance their new interest in baby boomer apparel with their usual aggressive marketing towards teens with money to burn. A company going overboard on boomer clothes may see the value of their brand - and their clothes -- decline if they don't focus on both groups of consumers.

Companies must have a broad enough market reach--and marketing savvy--to meet the needs of both groups. As the boomers continue to age, their needs will change. Retailers should always be looking two steps ahead as the American population matures.